Social Security Organization tenth actuarial valuation, as of 31 December 2014: Malaysia

This publication intends to shape reform options and check the relevance of the reforms already proposed in the ninth actuarial valuation of the Employment Injury Insurance (EII) Scheme and the Invalidity Pension Scheme.

This report is organized in six sections. It reviews the experience of the five-year period of the Employment Injury Scheme and the Invalidity Pension Scheme. Then, it describes the projection of the general population and the macroeconomic framework used for the valuation which will constitute the framework for the projections of the Employment Injury Scheme and the Invalidity and Survivors’ Benefits Scheme. Additional issues are also reviewed, such as the extension of the EI scheme to foreign workers and the 24-hour coverage of accidents under the EI scheme, among others. A summary of contribution and benefit provisions, a description of the methodology used for the valuation, key data inputs, assumptions and supplementary information on investment are discussed as well as the ILO recommendations for the future development of the scheme.